PayCargo management completes spin-off from First Data

The ocean freight payment software provider PayCargo said this week its management team has finalized spinning the company off its former parent company, the payment processing and credit card issuer First Data.
The spin-off was commenced in November, and the now-independent company said it “has enormous flexibility to make decisions on matters such as contract terms, pricing and geographic reach. As part of the new strategy, PayCargo is expanding into other transportation segments such as air cargo, trucking, rail and warehousing.”
Through its solution, the company offers multiple financing options, dispute resolution, systems integration, email alerting and reporting capabilities. PayCargo’s financing options allow carriers to paid more quickly and shippers to qualify for additional credit terms on their payables.
PayCargo caters predominantly to the third-party logistics and freight forwarding sectors.
“What has made PayCargo attractive to some of the larger third-party logistics providers is PayCargo’s ability to settle payments to the carrier by the next day with data-rich remittance information so that shipment release is expedited by the carriers, avoiding additional costs and loss of precious time for the 3PL," said the company’s new chief executive officer, Eduardo Del Riego.
PayCargo’s model was built on driving electronic invoicing and settlement in ocean shipping, unlike other vendors in the freight payment vendor market that have focused on the larger U.S. domestic trucking markets. Those vendors also offer ocean payment capabilities, but it’s not their core market as it is with PayCargo.
And while many ocean carriers remain somewhat unconvinced of the benefits of automating freight payment, usage of automated settlement solutions is steadily rising. That growth is driven primarily by shippers and logistics providers that see value in automating payment processes and have pressed their carriers to get on board.